Managed Infrastructure Services Market Size (2024 - 2029)

Managed Infrastructure Services Market Analysis

The Managed Infrastructure Services Market size is estimated at USD 117.17 billion in 2024, and is expected to reach USD 190.61 billion by 2029, growing at a CAGR of 10.22% during the forecast period (2024-2029).

Technology trends such as analytics, Cloud, IoT, and Cognitive Computing are creating new business imperatives. Companies are adopting these digital technologies to build innovative business models, optimize business processes, empower their workforce, and personalize the customer experience.

• Redundant downtime is reduced through managed services, which offer specialized value-added services like application testing, service catalog creation, and professional consulting. The market's development is aided by various monitoring tools and numerous layers of infrastructure controlled by separate teams. For instance, in BMC's "BMC Helix ITSM" the system is centralized, cloud-native, connected with observability, and optimized for AIOps. This solution fully exposes data from monitoring tools for IT infrastructure, application performance, network performance, and cloud services. Additionally, team and individual dashboards are customized to each user's needs.
• Technological proliferation and advancement of cloud-based technology boosting the demand is driving the market. Over the past few years, daily operations of break-fix and troubleshooting of servers have been outsourced to reduce their attention over IT, thereby allowing the expertise of IT service vendors. An increase in the adoption of digital transformation with mobility and cloud has led to infrastructure modernization. The need to keep up with the latest technological enhancements has led organizations to opt for infrastructure-managed services.
• Improved cost and operational efficiency and updates of outdated hardware are driving the market. Managed services offer several benefits, relentless focus on continuous improvement of operational and business processes being the most significant one. According to Cisco Systems, managed services reduce recurring in-house costs by 30-40% and increase efficiency by 50-60%. Moreover, as new and enhanced equipment is introduced to the infrastructure, the old hardware might not always be compatible. As data center operations increase, the hardware could become more of a liability which slows down operations, than an asset that enhances them.
• Declining profit margins and integration and reliability concerns are restraining the market to grow. Emerging technologies, such as mobility and cloud computing, are rapidly changing the business landscape. Companies have to be in sync with these technologies to deliver desired benefits to the customers. Reliability concerns are also challenging the market to grow when hiring another partner to host critical business infrastructure.
• Businesses are putting a lot of attention on remote working due to the COVID-19 pandemic. The use of cloud services grew significantly as companies became more concerned with maintaining operations during lockdowns imposed by various governments to stop the spread of the coronavirus. In anticipation of cloud migration becoming more widespread among corporations and, in some cases, even gaining traction, most businesses have already renewed their contracts with managed cloud service providers. Additionally, businesses and organizations prioritized integrating cutting-edge technologies like augmented reality and machine learning into their current IT infrastructure to promote digital transformation.

Managed Infrastructure Services Industry Segmentation

Managed infrastructure services refer to outsourcing an organization's infrastructure and inventory activities to a third-party managed service provider (MSP). These services are often taken on a contract basis, where the MSP has to fulfill a set of agreed standards to benefit from the contract. These practices are typically found in large-scale and small-scale organizations for desktop & print services contracts, servers, etc.

The managed infrastructure services market is segmented by deployment type (on-premise and cloud), services type (desktop and print services, servers, inventory), end-user (BFSI, IT, telecom, healthcare, manufacturing, retail), and geography (North America (United States, Canada), Europe (Germany, UK, France, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, and rest of Asia-Pacific), and Latin America (Brazil, Mexico, Argentina, and rest of Latin America), and Middle East & Africa (UAE, Saudi Arabia, South Africa, and rest of MEA).

The market sizes and forecasts are provided in terms of value in USD for all the above segments.